Compliance News 08-2006
by Rose M. Leiter
August 2006

Iowa
Paper copies of filing submissions will no longer be retained in Iowa. Filings will be stored and viewed using an on-line paperless system. Companies must follow and comply with Iowa’s new instructions for a filing to be accepted for review. Of course, SERFF is always another option for filing in Iowa.

Maryland
Carriers participating in the non-group health insurance/HMO market in Maryland are required to revise the notice mandated by COMAR 31.10.27 to reflect the new address of the MHIP (Maryland Health Insurance Plan). The new address is Maryland Health Insurance Plan, 509 Progress Drive, Suite 117, Linthicum, Maryland 21090-2256. The telephone number has not changed. If a carrier has a supply of old MHIP notices that shows the old post office box (PO Box 47160), the carrier may continue to use these notices through the end of 2006.

Massachusetts
A bulletin has been issued by Massachusetts clarifying the state interpretation of war exclusions in life insurance policies. Massachusetts permits exclusions where death is a result of war if the cause of death occurs while the insured is serving in the military or within six months after termination of service in the military. Military is defined to include Reserve and Guard duty. Insurers are required to make any necessary amendments to forms on file with the Division of Insurance on or before October 1, 2006.

New Jersey
New Jersey has issued Bulletin No.’s 06-11, 06-12, 06-13, and 06-14 all pertaining to the continuation of coverage for eligible dependents until 30 years of age.

New York
New York will no longer approve discretionary clauses in health insurance policies and contracts including disability income insurance.

Washington
A new fraud warning is required by Washington on all insurance applications and claims forms. The warning must state in substance: It is a crime to knowingly provide false, incomplete, or misleading information to an insurance company for the purpose of defrauding the company. Penalties include imprisonment, fines, and denial of insurance benefits. The new warning is to be used no later than January 1, 2007.

Wisconsin
Wisconsin now accepts the NAIC Uniform Transmittal Documents and the Uniform Product Coding Matrices. The coding system is to be used by insurers immediately.

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